Borderlands: Volkswagen invests $233M in new engine line in Mexico – FreightWaves

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Volkswagen invests $233 million in a new engine line in Mexico; Texas’ roads are the most dangerous; a supply chain provider expands in Dallas; and a new logistics facility is announced in Laredo, Texas.

Volkswagen announces new engine production line in Mexico 

Volkswagen AG (OTCMKTS: VWAGY) plans to invest $233.5 million in a new engine production line at an existing plant in the Mexican state of Guanajuato.

“With today’s investment announcement, we reaffirm our commitment to continue growing in Guanajuato and to continue trusting Mexico as a safe place to invest,” Steffen Reiche, president of Volkswagen’s Mexico unit, said Thursday in release.

Volkswagen’s new EA211 engine will be manufactured at the company’s plant in Silao, a city in the west-central part of Guanajuato state.

Volkswagen officials said the new EA211 engines will also increase capacity at the Silao plant by 75% and could add as many as 1,000 new jobs. 

The EA211 engine will motor the automaker’s new Taos SUV model, which is assembled at the company’s vehicle plant in nearby Puebla. 

The company also assembles its Jetta, Tiguan and Golf models at the Puebla plant.

According to Volkswagen’s website, its plant in Puebla is the largest automobile production facility in Mexico. Last year, 443,435 cars were made there. 

Around 330,000 engines were produced at Volkswagen’s plant in Silao, which also supplies motors to a Volkswagen vehicle plant in